International institutions describe Albania as the surprise success story of reform
Press conference by President Berisha
Last night at 8:00 p.m., the President of the Republic, Mr. Sali Berisha, held a press conference for foreign and domestic journalists. At the meeting, the head of state gave an overview of economic and social policy, emphasizing that international financial institutions today describe Albania as the surprise success story of reform. President Berisha then answered journalists' questions on various issues related to democratic, economic, social, institutional and diplomatic reforms.
The full text of President Berisha's press conference is as follows:
Question: Mr. President, at first glance there seems to be a fairly large gap between an economy that is growing rapidly, an insignificant industry and considerable unemployment. What is the real problem?
Answer: I think this development, based on the complete triumph of the market over diktat, command bureaucracy and political exploitation, has been experienced for the first time in Albania in a very meaningful and concrete way. This dominance, this triumph, has been made possible in our country thanks to a number of factors. First, we must bear in mind that the former totalitarian system was established in Albania under specific circumstances and developed as its extreme variant. At the other end of the spectrum, Albania was the country with the highest proportion of rural population in Europe. Only 15 percent of the population was urban, and even that was largely tied to state structures. In this sense, Albanian society inherited fewer distortions compared with other Eastern countries. On the other hand, Albanians preserved more individual energy, more ties to work and land, to small property and to personal initiative.
It was precisely on this basis that a rapid eruption of free energies became possible. The market functioned as a liberating mechanism. People began to produce, trade, build, and open private businesses. This brought about a noticeable growth in various sectors, especially agriculture, trade and services. Naturally, industry, especially that inherited from the old system, could not adapt at the same speed. This industry was built on uneconomic principles, without competition, without modern technology and without a market. For this reason, part of it collapsed, while the rest is undergoing restructuring.
In this sense, there is no contradiction between economic growth and the difficulties of the old industry. On the contrary, this is a normal transition process. The unemployment that exists is largely linked to the destruction of the artificially inflated state sector. But, in parallel, new opportunities have opened up in the private sector. Of course, not everyone can adapt immediately to the market economy; for this reason the government has launched social and incentive programs, as well as policies for privatization and the development of entrepreneurship.
Question: Do you think economic growth will continue at the same pace, and what are the main factors supporting it?
Answer: We believe so. Albania has entered a phase in which citizens' confidence, the sacrifices made, and the support of international financial institutions have created a solid foundation. Stabilization programs, control of inflation, liberalization of prices and trade, as well as banking and fiscal reform, have produced concrete results. That is why international institutions consider Albania a success story. Of course, many problems remain, but the direction is clear and irreversible.
Question: Is there a possibility of a coalition with the Socialist Party?
Answer: To make a coalition with the Socialist Party means to serve the establishment of neo-communism in Albania. I say this with full conviction. The program, mentality and practices of this party do not represent a modern European alternative, but an attempt to return to the past in other forms. Albania has made its choice for freedom, the market, pluralism and Western orientation. Any compromise that undermines these principles would be harmful to the country.
Question: How do you assess Albania's relations with international organizations?
Answer: Our relations are very good and constantly improving. Albania has won the trust of many institutions and governments. This is the result of the reforms, the seriousness with which we are moving forward, and the will to build functioning democratic institutions. We still have a great deal of work to do, but the country's reputation is clearly better than it was a few years ago.